Mercedes-Benz Korea CEO Mathias Vaitl speaks during a press conference in Busan, April 4. Courtesy of Mercedes-Benz Korea
Mercedes-Benz Korea’s direct sales model will reshape the retail paradigm in the imported car market here, as more carmakers are expected to jump on the bandwagon once the system proves successful without any steep price hike, experts and industry officials said.
The local subsidiary of the German carmaker introduced Monday the “Retail of the Future” sales model under which its headquarters will directly control each vehicle’s pricing and sales.
The carmaker had so far partnered with a group of dealerships for its sales, but consumers will not be able to see any surprise discount campaigns offered at dealers’ discretion due to the reshaped sales model.
The core of the new system is a unified structure integrating pricing and inventory, which had previously varied by dealership. This will allow customers to purchase vehicles under the same conditions nationwide, regardless of location.
Mercedes-Benz Korea believes the new sales model will eliminate pricing opacity, as customers will be able to focus solely on the vehicle model and brand experience, rather than negotiating prices with dealers.
The automaker has already introduced the direct sales model in 12 countries, including Germany, the United Kingdom and Australia, and is now expanding it to Korea.
A retail facility for Han Sung Motor, the official dealer for Mercedes-Benz Korea, in Seoul / Courtesy of Han Sung Motor
Imported carmakers that have yet to adopt a direct sales model are taking a wait-and-see approach, closely monitoring initial market reactions to Mercedes-Benz Korea’s latest move.
The first imported car brand to introduce direct sales in Korea was Tesla Korea, which implemented a 100 percent online sales model without dealerships.
Source: Korea Times News
